30 CFR 1206.55 - What are my responsibilities to place production into marketable condition and to market the production?

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§ 1206.55What are my responsibilities to place production into marketable condition and to market the production?

You must place oil in marketable condition and market the oil for the mutual benefit of yourself and the Indian lessor at no cost to the lessor, unless the lease agreement provides otherwise. If, in the process of marketing the oil or placing it in marketable condition, your gross proceeds are reduced because services are performed on your behalf that would be your responsibility, and if you valued the oil using your or your affiliate's gross proceeds (or gross proceeds received in the sale of oil received in exchange) under § 1206.52, you must increase value to the extent that your gross proceeds are reduced.

ONRR is amending its regulations governing the valuation, for royalty purposes, of oil produced from Indian leases. This rule will expand and clarify the major portion valuation requirement found in the existing regulations for oil production. This rule represents the recommendations of the Indian Oil Valuation Negotiated Rulemaking Committee (Committee). This rule also changes the form filing requirements necessary to claim a transportation allowance for oil produced from Indian leases.

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

ONRR is amending its regulations governing the valuation, for royalty purposes, of oil produced from Indian leases. This rule will expand and clarify the major portion valuation requirement found in the existing regulations for oil production. This rule represents the recommendations of the Indian Oil Valuation Negotiated Rulemaking Committee (Committee). This rule also changes the form filing requirements necessary to claim a transportation allowance for oil produced from Indian leases.

The Office of Natural Resources Revenue (ONRR) published a notice of proposed rulemaking in the Federal Register on January 6, 2015, (80 FR 608). ONRR invited the public to submit written comments by March 9, 2015. ONRR is granting a 60-day extension to the comment period in response to stakeholder requests.

The Office of Natural Resources Revenue (ONRR) proposes to change the regulations governing valuation for royalty purposes of oil and gas produced from Federal onshore and offshore leases and coal produced from Federal and Indian leases. The proposed rule also consolidates definitions for oil, gas, and coal product valuation into one subpart applicable to the Federal oil and gas and Federal and Indian coal subparts.